if i buy a house for $184,000, and plan on paying a down payment of 10% and doing a 30 year loan plan, what will my monthly payments be if the interest rate is 7%?
To calculate the monthly payment, we need to consider the loan amount, loan term, and the interest rate. In this case, the loan amount will be 90% of the purchase price because you are making a 10% down payment.
Loan amount (P) = $184,000 - (10% x $184,000) = $184,000 - $18,400 = $165,600
Loan term (n) = 30 years
Interest rate (r) = 7% = 0.07 (in decimal form)
Using the formula for the monthly payment on a fixed-rate mortgage:
M = P * (r * (1 + r)^n) / ((1 + r)^n - 1)
M = $165,600 * (0.07 * (1 + 0.07)^30) / ((1 + 0.07)^30 - 1)
M = $1,100.83
Therefore, your monthly mortgage payment would be approximately $1,100.83.